The National Agenda Project Team pointed out that the uniformity imposed on the country's welfares system by the Kim Dae-jung administration produced severe side effects and a waste of taxpayers' money. They proposed to change it to a "workfare" system, which benefits those who work harder.

The seven-man team headed Seoul National University Professor Park Se-il said that those who have the capability to, but do not work should have their benefits slowly removed, and tax deductions should be expanded for those who work more. It proposed a "triple guarantee system" whereby workers, companies, and government make pension contributions.

In the past five years the government expenditure on welfare has increased at an annual rate of 30 percent. The team admitted this contributed to building a social safety network after the financial crisis, but was expanded too rapidly due to idealism and populism.

Under the current basic life guarantee system, all people with no capability to work receive a minimum living allowance; a four person family gets W990,000 a month. If a person in the four person family is working and only receives W600,000 a month, the government pays him or her W390,000. A daily worker averages W750,000 per month. This presents few incentives for a welfare recepeint to work more. As a result the welfare budget has tripled in size over five years and created a group of people who opt to remain jobless to get this money.

This kind of policy is based on the government taking unlimited responsibility for welfare, but taking into account the rapid trend of a graying society, it is undesirable to continue in this manner.

There are three kinds of welfare provided by the government; national pension, medical health, and living assistance. In the pension system, the fund for special allowances given to the military and civil servants has already dried up, and it is expected that funds for private school teachers will dry up by 2030 and the national pension in 2048; due to payments out exceeding revenue.

To prevent the drying up of the national pension, current payments into the system need to be 18 percent of income, while in 2020 people will have to pay 60 percent of their income in taxes and social insurance.

The team proposed a double track system of a simple base for everyone, but increased allowances for those who pay more into the fund. In addition it encouraged company and private pension schemes. With regard to the military and civil servants the government needs to readjust payments in accordance with revenue.

The current medical system is in a shambles as there are too many doctors in specialty areas and pharmacists and the team advised making a clear delineation in staffing areas with consistent personnel.